President Christodoulides signs foreclosure laws and refers others to Supreme Court

President Nikos Christodoulides has signed three foreclosure and insolvency laws into effect while referring two others to the Supreme Court for constitutional review. The laws, passed by parliament on April 6, aim to provide borrowers with tools to protect their primary residences. Key provisions include the right for borrowers to file a court challenge within 45 days of receiving a foreclosure notice, potentially pausing proceedings for up to 12 months to negotiate debts. Another measure prohibits creditors from demanding extra collateral if existing assets already cover the loan value. The government argued that the two referred laws represent a legislative overreach into executive and fiscal policy, warning they could encourage strategic defaults and harm the financial system. In contrast, proponents like DIKO leader Nikolas Papadopoulos claim the laws offer necessary breathing room for borrowers while attempting to balance protections against abuse. This brings the total number of presidential legal referrals on foreclosure issues to six. The government maintains that the referral is a standard constitutional check rather than a political dispute.